Dubuque

Schedule of Findings and Questioned Costs Summary Schedule of Prior Year Findings Other Findings Related to Required Statutory ReportingCITY OF DUBUQUE, IOWA TABLE OF CONTENTS2188-189 190-193 194-196 197-198 199-201 202 203-204 ### Page 9 April 4, 2026 Honorable Mayor, City Council Members, and Residents of the City of Dubuque: The City of Dubuque, Iowa, pursuant to the requirements set forth by state and federal regulations, hereby submits the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Understanding the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed data is accurate in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and activities of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial operations have been included. The Code of Iowa requires an annual audit by independent certified public accountants or the State Auditor. The accounting firm of Mauldin and Jenkins conducted the audit for fiscal year 2025. The independent auditors’ report is included in the Financial Section of this report. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual single audit in conformity with the provisions of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Information related to this single audit, including the Schedule of Expenditures of Federal Awards, findings, recommendations, and the auditor’s report on internal control over financial reporting and compliance with requirements applicable to laws, regulations, contracts, and grants, are included in the Compliance Section of this report. The City provides a full range of services including: police and fire protection; sanitation services; the construction and maintenance of roads, streets, and infrastructure; inspection and licensing functions; maintenance of grounds and buildings; regional airport; library; parks, recreational activities; and cultural events. In addition to general government activities, the municipality owns and operates enterprises for a water system, water resource and recovery center (wastewater treatment), stormwater system, parking facilities, refuse collection, road salt, and public transportation. This report includes all funds of the City of Dubuque, as well as its component units. Component units are legally separate entities for which the City is financially accountable. The City has no blended component units. This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives and Subsidiaries, and Dubuque Convention and Visitors Bureau as discretely presented component units. A discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City of Dubuque and to differentiate its financial position and results of operations from those of the City. The City appoints a voting majority to the DMASWA governing board and operates the landfill. Dubuque Initiatives, Inc. is a sustainable, non-profit organization,3Finance Department 50 West 13th Street Dubuque, Iowa 52001-4805 Office Fax TTY www.cityofdubuque.org ### Page 10 working as a community partner and catalyst, to undertake challenging projects involving job creation and/or community revitalization that supports a viable, livable and equitable community. In the event of dissolution, any assets or property of the organization are transferred to the City. Travel Dubuque’s purpose is to strengthen the Dubuque area economy by competitively marketing the area as a destination for conventions, tour groups, sporting events, and individual travelers. The organization’s board members include one City Council member, the City of Dubuque Mayor, and the City Manager. In the event of dissolution, any assets or property of the organization shall be transferred to the City. The City collects hotel/motel taxes and forwards 50% to Dubuque Convention and Visitors Bureau as the primary source of funds for its operations. Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Dubuque’s MD&A can be found immediately following the independent auditor’s report.PROFILE OF THE CITYThe City of Dubuque, incorporated in 1833, is located on the Mississippi River in northeast Iowa, adjacent to the states of Illinois and Wisconsin. Julien Dubuque, the city’s namesake, first began mining lead in the area now known as Dubuque in 1788. Dubuque is the oldest city in Iowa and has a unique combination of the old and new, ranging from a historic downtown, numerous examples of Victorian architecture, and a Civil War era shot tower, to expanding industrial parks, multiple retail centers, revitalized riverfront and millwork districts and two casinos, one of which operating as a non-profit (DRA) with annual net revenues disbursed equally to the City’s general fund, to the DRA for distribution to local non-profits in the form of grants, and for the redevelopment of Chaplain Schmitt Island. The City of Dubuque has a stable, diversified economic base and is a major tri-state retail center. The City currently has a land area of 32.3 square miles, and a census 2020 population of 59,667. As the largest city in the tri-state area, Dubuque serves as the hub of a trade area with a population estimated at 250,000. As of June 2025, the City’s unemployment rate was 3.1%, above the state unemployment rate of 2.8% and below the 4.1% national rate. The City of Dubuque is empowered to levy a property tax on real property located within the city limits. The City has operated under a council-manager form of government since 1920. Policymaking and legislative authorities are vested in the governing council, which consists of a mayor and a six-member council. The city council is elected on a non-partisan basis. The mayor is elected to a four-year term. Council members are elected to four-year, staggered terms with three council members elected every two years. Four of the council members are elected within their respective wards; the mayor and the two remaining council members are elected at-large. The governing council is responsible, among other things, for setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the city manager, city attorney, and city clerk. The city manager is responsible for overseeing the day-to-day operations of the government, making recommendations to the city council on the budget, and other matters, appointing the heads of the government’s departments, and hiring employees.ECONOMIC CONDITION AND OUTLOOKThe economic condition and outlook of Dubuque continues to thrive. The City’s economy has a diverse employer base including manufacturing, technology, health services, insurance, education, and government. The top 10 employers in the area employ less than 26% of the total workforce and cover five different industries, which insulates the City against the negative impact from a downturn in any one area of the economy. Several industry experts and associations have4 ### Page 11 recognized the community’s efforts to diversify its economy. Local unemployment rates are above (3.1%) statewide (2.8%) and below the national (4.1%) figures.IndustrialIn fiscal year 2025, the City of Dubuque experienced an expansion of industrial development in multiple regions of the city. These regions include the Dubuque Industrial Center West (DICW), the Dubuque Industrial Center South (DICS), the Kerper Boulevard industrial area, and the Dubuque Industrial Center Crossroads (DIC). The Dubuque Industrial Center West and South (DICW and DICS) together have a total of 713 acres of developable land. These industrial centers contain more than forty-five different businesses which have brought hundreds of jobs to the region. The area continues to have available lots for future investment and job creation. In Fiscal Year 2025, the DICW saw one business expansion project. Universal Tank and Fabrication, Inc. constructed a 30,000 square foot addition to its facility. This project retained 40 full time positions in Dubuque while creating 10 new full-time jobs. Also in 2025, FEH Design purchased property at 902 Main Street for rehabilitation and creation of a new headquarters. The project will retail 11 full time positions within Dubuque while creating 10 new full-time jobs. Also in 2025, 400 Ice Harbor, LLC (a subsidiary of Hodge Company), acquired property in the North Port to expand its corporate workforce. On Bluff Street, Woodward Communications remodeled its existing facility to bring WHKS & Co to the City of Dubuque. At 781 Locust Street, CBDC, LLC (a subsidiary of Cottingham and Butler) invested $12 million dollars to build out a state- of-the-art childcare center to support the needs of its growing workforce.Commercial and RetailDowntown Development: Over $1.2 billion has been invested in the downtown area over the past 30 years in building rehabilitation, new construction, and public improvements where more than 9,000 people work. Heartland Financial and Cottingham & Butler partnered in 2019 to purchase the Roshek Building in order to accommodate their quickly expanding workforce. Their subsequent buildout provides office space on all floors of the building to support hundreds of additional Heartland (now UMB) and Cottingham & Butler employees at this location. This continued use of an iconic historic building in Dubuque's downtown supports our local retail. The Dubuque Museum of Art has a $69 million state-of-the-art facility/campus under construction. And Cottingham and Butler has invested $9 million for the development of the New Horizon Academy childcare facility on that same block. Other downtown development: – Medical college (500 Main Street), construction of a new 4-story osteopathic medical college ($33 million). – 5th & Main (501 Main Street), construction of a 5-story mixed-use building including 8,000 square feet of first-floor commercial space and at least eighty (80) rental residential units ($24 million). – Key Hotel and the Q Casino (1825 Greyhound Park Rd), construction of a new 7-story Luxury Hotel with Amenities ($39 million). Kinseth Hospitality Company has agreed to invest $18 million to create a 90 room Marriott brand hotel in the North Port. Riddle Group has agreed to invest $10 million for the rehabilitation of the Grand Harbor Resort.Historic Millwork District: The Historic Millwork District is saturated with history. It imbues the area with authenticity and character while offering valuable lessons about the importance of sustainable urban design strategies. Dubuque’s Historic Millwork District is a keystone to the region’s aggressive economic development strategy. With one million square feet of historic5 ### Page 12 warehouse space ideal for urban mixed-use development, the District is perfectly suited to attract entrepreneurs, designers, residents, institutions, and businesses prepared to fuel Dubuque’s globally competitive and sustainable economy. The District is currently home to multiple eateries, breweries, and shopping venues, as well as over 200 residential units, with nearly 200 additional units planned to begin construction in 2026. To date, the public and private sectors have cooperated to invest more than $175 million into the transformation of the Millwork District and it is attracting entrepreneurs, residents, institutions, and businesses that are fueling Dubuque's competitive economy.Commercial Development: In 2025, Asbury Plaza continues to be developed with the additions of Starbucks and Brakes Plus. Other notable commercial projects that were reviewed, completed or under construction during the fiscal year include: – Wanderwood Gardens (3800 Arboretum Drive) - Three-acre immersive woodland playground with classrooms, event spaces, and immersive outdoor experience ($10 million) – University of Dubuque (1100 Airport Rd) - Construction of a new 43,000 square foot hanger ($10 million) – Kwik Star Convenience Store and Gas Station (730 Airborne Rd) – Dutrac Community Credit Union (380 E. 14th Street): New Construction – Kraus Enterprises LLC Multi-bay Carwash (1061 Cedar Cross Road): New Construction – Callahan Construction (7619 Commerce Park): Building Expansion – Horsfall Storage (8205 Seipple Court): New Construction – Finnin Kia Car Dealership (4355 Dodge Street): Building Expansion – Peosta Storage (1820 Radford Road): New Construction – National Mississippi River Museum Otter Exhibit (350 E. Third Street): Building Expansion – Portzen Multi-Tenant Building (6600 Boulder Brook Court): New ConstructionResidentialIn fiscal year 2025, the City of Dubuque saw an expansion of residential projects. Residential development included market rate apartments, single-family lots, duplex lots, and workforce housing units. The following residential developments were reviewed, completed, or under construction during the fiscal year: – CAL5 LLC Properties (3150 Lake Ridge Drive); 14-unit market rate housing development – Century Square Apar